US Gov Reveals Historic $1 Billion Nuclear Deal With Constellation Energy

In October 2024, we reported that Microsoft was partnering with Constellation Energy Corporation in a 20-year power purchase agreement that includes restarting Constellation's Three Mile Island (TMI) nuclear plant’s Unit 1.

The goal was to address the concerns raised by the growth spurt of energy consumption which was surcharged by the globe’s growing interest in artificial intelligence (AI) and generative artificial intelligence (GenAI) products and services.

This move would also see the two companies add around 835 megawatts of carbon-free energy to the PJM (Pennsylvania-New Jersey-Maryland Interconnection) grid, which covers 13 states spanning Pennsylvania, Delaware, Illinois, Indiana, Kentucky, Michigan, New Jersey, North Carolina, Ohio, Tennessee, Virginia, West Virginia, Maryland and the District of Columbia.

Following this, similar announcements were made by Google, Amazon, and Meta, each with their own plus points and benefits.

Now, the US government is stepping into the nuclear power domain, as it looks to adopt clean and carbon-free energy.

The move included the US General Services Administration (GSA), which manages government buildings, awarding over $1 billion in combined contracts to Constellation Energy Corporation, which is a Fortune 200 company and the US’s largest producer of clean, emissions-free energy.

This includes a 10-year, $840 million contract (the largest in GSA history) as well as a $172 million Energy Savings Performance Contract to perform energy savings and conservation measures at five GSA-owned facilities in the National Capital Region.

As such, the GSA will supply more than 1 million megawatt hours (MWh/yr) of power annually, beginning in 2025, to over 13 government agencies, which include:
 

• The Architect of the Capitol

• The General Services Administration

• The Social Security Administration

• The Army Corps of Engineers

• The Department of Veterans’ Affairs

• The Department of Transportation

• The US Mint

• The US Railroad Retirement Board

• The National Archives and Records Administration

• The Federal Bureau of Prisons

• The Federal Reserve System

• The National Park Service

• The National Oceanic and Atmospheric Administration

• The Washington Metropolitan Area Transit Authority

This will be applicable to locations the agencies own or operate in Illinois, Maryland, New Jersey, Pennsylvania, and Ohio.

Constellation will also work to convert four buildings in Washington, DC, from steam power to electricity to meet the buildings' heating requirements.

What Did GSA And Constellation Executives Say?

Speaking about the move, GSA Administrator Robin Carnahan, said, “This historic procurement locks in a cost-competitive, reliable supply of nuclear energy over a 10-year period, accelerating progress toward a carbon-free energy future while protecting taxpayers against future price hikes.”

“We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone.”

Ahead of this, Joe Dominguez, Constellation President and CEO, said, “For many decades, Constellation’s nuclear fleet has provided carbon-free, reliable, American-made energy to millions of families and institutions.”

“Frustratingly, however, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed. Under this agreement, the United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets.”

“In combination with the Crane restart announced previously, Constellation and its partners will add approximately 1,100 MWs of 24/7 clean energy by 2028, enough energy to power over one million homes.” 

Do you think this move by the US government will help other tech conglomerates aiming to make similar moves? Do you think nuclear power is the next big thing in the energy race?

Let us know in the comments below!